Reconstructing Basis for Shareholders
2 CPE for AFSP, EA, CFP®, CPA, CRTP
Tracking basis in an S corporation is necessary to determine the shareholder’s deductibility of pass-through losses, taxability of distributions from the S corporation and gain or loss on the sale of their stock. Basis is difficult to calculate when records are incomplete or missing. To ensure the shareholder’s basis in an S corporation is accurate, you must understand the rules for computing basis and how to reconstruct the basis using tax returns and other supporting documents. This session uses practical examples to reconstruct the shareholder’s basis in an S corporation.
Objectives
Upon completion of this session, you will be able to:
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Determine the shareholder’s initial basis in the S corporation
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Summarize how to adjust basis each year
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Calculate and track basis over time
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Summarize Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations, filing requirements
CPE information
Duration: 100 minutes
Course level: Intermediate
Prerequisite: Basic understanding of shareholder basis
Advanced preparation: None
Delivery method: Group Live
